Gas Malaysia hikes up prices of natural gas

Gas Malaysia Bhd under the GCPT mechanism, a rebate of RM1.59/MMBtu will apply to all tariff categories from July to December 2017 (the rebate was 40 sen per MMBtu in the Jan to June 2017 period). Pix source: Gas Malaysia

KUALA LUMPUR: Gas Malaysia Bhd has revised up the natural gas tariff for the non-power sector in Peninsular Malaysia with the average gas base tariff of RM28.05 per MMBtu (one million British thermal units).

In an exchange filing yesterday, the gas distributor said the government has approved its revision, through the Energy Commission, effective from July 1, 2017 to December 31, 2017.

“The government has prescribed the Incentive Based Regulation (IBR) framework which sets the base tariffs for a regulatory period of three years from January 2017 and allows changes in the gas costs to be passed through via the Gas Cost Pass Through (GCPT) mechanism every six months.

Gas Malaysia said, under the GCPT mechanism, a rebate of RM1.59/MMBtu will apply to all tariff categories from July to December 2017 (the rebate was 40 sen per MMBtu in the Jan to June 2017 period).

It noted the average effective tariff is RM26.46/MMBtu, an increase of 0.57% from the previous average effective tariff of RM26.31/MMBtu.